DCB Bank Q2 profit grows 24.5% to Rs 91.4 cr, but asset quality weakens
Private sector lender DCB Bank’s profit after tax increased 24.5 percent year-on-year (YoY) to Rs 91.41 crore for the quarter that ended on September 2019, but asset quality weakened sequentially. The net growth was driven by other income, PPoP and NII.
Net interest income, the difference between interest earned and interest expended, grew by 11.2 percent YoY to Rs 313.36 crore in Q2FY20, with advances as well as deposits showing a growth of more than 12 percent each.
Asset quality weakened further during the quarter that ended on September 2019 with gross non-performing assets (NPA) rising to 2.09 percent, up from 1.96 percent sequentially and net NPA also increasing to 0.96 percent from 0.81 percent QoQ.
Provisions and contingencies also jumped 35.64 percent YoY to Rs 43.27 crore in September quarter 2019 while the same increased 6.5 percent on sequential basis.
Other income or non-interest income shot up 38 percent to Rs 101.39 crore and pre-provision operating profit jumped 26.3 percent to Rs 184.53 crore compared to same quarter last year.The Great Diwali Discount!
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